Treasuries drop as stock rebound saps demand for safest assets
Treasuries declined as a rebound in stocks reduced demand for the safest assets and some investors bet gains that pushed the two-year yield to a record low weren't justified. Ten-year securities snapped a three-day rally that left the yield 21 basis points lower. Futures on the Standard & Poor’s 500 Index rose 0.4%, signaling the measure may rebound after losing 2.9% on July 16. The US economy will probably grow 3.1% this year after a 2.4% contraction in 2009.